CMHC Apartment Construction Loan Program (ACLP)
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Eligibility & Details
What this program funds and who can apply
Program Description
Provides low-cost CMHC-insured construction loans covering up to 100% of the residential component of project cost for new purpose-built rental housing, student housing, and independent seniors housing across Canada. Part of a $55B program envelope extended to 2028-29; over $29B committed to 74,500+ new rental units as of late 2025. Minimum loan size $1M; converts to permanent MLI Select financing at project stabilization.
Eligibility Requirements
- For-profit developers, non-profit housing providers, Indigenous housing organizations, institutional investors, post-secondary educational institutions, and other levels of government
- Project must be new construction of purpose-built rental housing — standard rental, student housing, or independent seniors housing
- Project must be located in Canada with demonstrated need for additional rental supply in the market
- Minimum 5 fully self-contained rental units
- Non-residential component may not exceed 30% of total gross floor space or project cost
- Minimum loan size of $1,000,000
- Frequent Builder status available for established housing providers with multi-residential delivery track record and no CMHC defaults in past 10 years
Quick Assessment
Funding Details
- Amount
- Minimum $1M; up to 100% of residential component project cost (no cap — project-sized)
- Type
- Loan
- Level
- Federal
- Financing share
- Up to 100% of eligible costs
- Deadline
- Ongoing
Program Scorecard
Competition, effort, and approval at a glance
Everything you need to secure ACLP
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 7 rejection pitfalls reviewers flag — so you catch them first
- 11-document checklist with what each reviewer is actually checking
- 8-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 4-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what lenders look for
How to qualify
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe ACLP is most competitive when your project targets markets with measurably low vacancy rates — CMHC explicitly prioritizes projects where rental supply shortfall is documented. Apply for Frequent Builder status if your organization has completed 2+ CMHC-financed multi-residential projects with no defaults in the past 10 years; it dramatically reduces processing time. The guaranteed conversion to MLI Select permanent financing at project stabilization eliminates refinancing risk at construction completion — this is one of the most valuable features of the program. Stack with provincial affordable housing programs (e.g., BC-CMHC ACLP Collaboration Agreement signed January 2025) where available for combined low-cost financing.
Rejection Pitfalls 7
- Project is not purpose-built rental — condominiums for sale are explicitly ineligible
- Fewer than 5 fully self-contained residential units
- Non-residential component exceeds 30% of gross floor space or project cost
Success Profile
Experienced real estate developer, non-profit housing provider, or institutional investor with a 5+ unit purpose-built rental project in a Canadian market with documented rental demand and low vacancy. Established developers with a CMHC track record qualify for the Frequent Builder framework with faster processing. Non-profits and Indigenous housing organizations are strongly supported, particularly for affordable and community housing projects.
Evaluation Criteria
CMHC underwriting assesses: (1) market demand — rental need and vacancy rate in the target market from a commissioned market study, (2) project feasibility — construction cost estimates, realistic timeline, and architectural plans, (3) borrower financial capacity — balance sheet strength, equity contribution, and delivery track record, (4) project economics — pro forma showing viable rental returns at market rents, (5) Frequent Builder status for expedited track. CMHC underwriters conduct full appraisal and independent cost review before issuing a Letter of Intent.
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 11
Eligible Expenses 7
- Hard construction costs (labour, materials) for the residential component
- Soft costs — architectural, engineering, legal, and project management fees
- Land costs (typically included up to appraised value)
- Construction contingency allowance
- Interest during construction (capitalized into the loan)
- Conversion costs for non-residential to residential projects
- Prefabricated or modular construction components
Ineligible Expenses 5
- Condominium units for sale (not purpose-built rental)
- Non-residential costs exceeding 30% of total project gross floor area or cost
- Speculative residential development not intended as long-term rental
- Projects with fewer than 5 self-contained units
- Renovation of existing rental buildings (unless conversion from non-residential to rental)
Deadline Notes
Program accepts applications continuously. Extended to fiscal year 2028-29. CMHC processes within 265 days of receiving complete required documentation. No intake windows — apply when project is ready. Contact a CMHC regional specialist before applying.
Open Application Portal →Ineligible Organizations
- Individuals applying without a corporate or legal entity
- Developers with unresolved CMHC defaults within the past 10 years
- Developers of condominiums for sale rather than purpose-built rental
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Not-applicable RiskThis is a fully repayable construction loan that converts to permanent mortgage financing. Full repayment is required per the loan and mortgage terms. Default triggers standard CMHC mortgage recovery procedures. No grant-style clawback.
How ACLP Compares
Side-by-side with similar programs
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|---|---|---|---|---|
| CMHC Apartment Construction Loan Prog... | Minimum $1M | Hard | Loan | Ongoing |
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| Green Construction Through Wood (GCWo... | Up to $5,000,000 | Hard | Milestone-Based | Periodic Calls for... |
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Frequently Asked Questions
Quick answers to the questions founders most often ask about ACLP